National Education Day 2025: Half Of India’s Graduates Underemployed- Why Job Market Rewards Skills Over Degrees

On National Education Day 2025, we take stock of India’s deepening employability crisis as degrees no longer ensure best of jobs. Fancy degrees won't do the trick as employers now prioritise skills, adaptability, and ability to learn. Scroll down to read more about this. 

National Education Day 2025: Half Of India’s Graduates Underemployed- Why Job Market Rewards Skills Over Degrees
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National Education Day 2025: In today’s job market, having a degree is no longer a guarantee of employment or success. Across India, millions of graduates are discovering that what truly matters is not just what they’ve learned in college, but how quickly they can learn new things. The gap between education and employability is widening and it’s turning into one of India’s biggest challenges.

The Degree Dilemma: Learning vs. Employability

According to insights shared by Dr Umesh Kothari from SP Jain School of Global Management, citing data from the Economic Survey 2024-25, half of India’s graduates are underemployed, often working in low-skill jobs that don’t match their qualifications. Only 8.25% are in roles aligned with what they studied. Dr. Kothari notes that this mismatch exposes a deeper issue, that while India’s education system still emphasizes degrees, the job market has shifted to rewarding skills and adaptability.

As he explains that, “In today’s world, degrees alone are not enough.” He points out that around 63 in every 100 Indian workers will need retraining by 2030, but many may never get the chance to upskill. That means over 70 million people could be left behind in a fast-changing economy.

Dr Kothari also notes that the average shelf life of a skill is shrinking, especially in fields like AI and data science, where it can be less than two years. What employers now value most is the “ability to learn, unlearn, and relearn.” In other words, knowledge can become outdated but the ability to adapt never does. Those who can quickly grasp new tools and enter unfamiliar fields will always have an edge.

The Shift to Skills: What Employers Really Want

The hiring landscape is evolving rapidly. Companies are no longer asking, “Where did you study? Or what did you study?” but rather, “What can you do next?” As Ankit Aggarwal, Founder of Unstop, explains, automation, AI, and digital transformation have changed what employers prioritize, they now look for people who can solve problems, adapt, and innovate.

Aggarwal says that students who engage in real-world problem-solving, such as hackathons or skill-based assessments, are landing jobs faster. This shift towards skill-based hiring is becoming the norm in India, as companies recognize that practical ability often outweighs academic credentials. It’s not about memorizing theories anymore, it's about applying knowledge creatively to real challenges.

Learning How to Learn Is the Real Degree

India’s employability crisis isn’t about the lack of education, it's about the lack of relevant skills. The future belongs to those who can learn continuously and reinvent themselves as industries evolve. As Dr. Kothari puts it, “Meta-learning, the discipline of learning how to learn, is the single most important skill today.”

In the end, the real measure of success won’t be your degree, but your learning agility, the ability to stay curious, keep growing, and adapt faster than the world around you.

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